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FOR IMMEDIATE RELEASE

TRAVELERS PLAN TO SPEND MORE VACATIONING IN 2004,
ACCORDING TO AMERICAN EXPRESS LEISURE TRAVEL INDEX
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2003 End- of-Year Holiday Travel Snapshot
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Americans Say They Most Want to Unwind

NEW YORK, N.Y., October 22, 2003 - American travelers say they plan to dig deeper into their wallets in 2004, spending more for longer vacations, motivated by an enhanced desire to unwind, according to the American Express Leisure Travel Index. In addition, more are planning to travel internationally as well as domestically.

On average, travelers expect to spend $2,962 in 2004 on airfare, accommodations, sightseeing, meals, souvenirs and other expenses for all longer vacations, up from the $2,163 they said they planned to spend in 2003. The number of travelers planning to spend more than $5,000 will nearly double (rising from 6% to 11%).

According to the American Express Index, which provides consumer travel data for year-end 2003 through the end of 2004, nearly one-half of travelers (48%) planning to travel by plane, said they plan to travel both domestically and internationally, a leap from 36% in 2002.

"This is good news for the travel industry, with consumers reporting a renewed desire to venture farther from home," said Rocco Laterzo, senior vice president and general manager, travel and entertainment industries, American Express. "Travel providers are working harder than ever to deliver real value to the leisure traveler and consumers seem to be responding with their wallets."

While spending is up, travelers across all income groups describe their travel style as "value-minded, seeking good quality within a budget," (78%). And contrary to conventional wisdom, 87% of higher income households (incomes of $50,000-$75,000) describe themselves in this value-minded category. Only about one in ten (12%) of long vacationers say they "travel on a shoe string by seeking the lowest price available in all travel purchases." And even fewer (7%) say they require "luxury at any cost." The younger set, 18-34, is only a little more likely to travel "on a shoe string" than Americans 55-64 (19% vs. 13%).

An urge to unwind

A majority of travelers (63%, up from 57% in 2002) say their ideal vacation is "a place where you can relax and unwind," followed by a place to spend "quality time with your family" (56%, down from 58% in 2002). The "ideal" vacation also includes enjoying "historical and cultural activities" (48%, up from 43% in 2002), "a place that has great outdoor sports activities, such as hiking and skiing" (32%, up from 30%), and a "place known for great entertainment" (30%, up from 27%).

Others want a place they've "read about in books or seen in the movies" (27%), "an all-inclusive vacation" (24%), and a "place where children's activities take place so that I can relax" (20%). And Fido appears to be going along with the family, with 13% of respondents describing an ideal vacation as one that is "pet friendly."

"The 2003 Index shows that consumers are placing a high value on pleasure trips," added Laterzo. "Consumers are willing to spend a bit more, but they expect great value and a real sense of getting away."

Asked to classify their pleasure trips, the majority (55%, up from 52% in 2002) said "visiting family and friends," followed by "a beach resort vacation" (29%, down from 36% in 2002), a camping or outdoor vacation (24%, down from 26%), a theme park vacation (17%, down from 20%), and a gambling or casino trip (15%, slightly down from 16%). More plan to take a "cultural or historical vacation" (23%, up from 19%), and a cruise (16%, up from 10% in 2002).

Sixty-eight percent (down from 72% in 2002) say they are planning short weekend getaways, and their average number of weekend trips, four, is on par with what they planned in 2002. The length of longer vacations - averaging 8 days - is on par with plans for 2002.

End-of-year vacations are popular; first quarter also looks strong

More than one in four Americans (28%) plans to vacation this fall and during the end-of-year holiday season, nearly on par with 2002 (25%). On average they will spend $1,872 this fall and during the end-of-year holiday season, on airfare, accommodations, sightseeing, meals, souvenirs and other expenses for all vacations.

More plan to travel during the Christmas holiday (39%) than at other times. More than one in five (23%) will travel over the Thanksgiving weekend, and nearly one in five (17%) will travel during the fall until Thanksgiving. The majority (52%) plan to stay at a hotel, motel or resort, but almost as many (47%) will stay with friends or family.

Winter and early spring vacations are increasing in popularity with twice as many planning their vacations for next April (12% vs. 6% in 2002) and March (10% vs. 4%).

Airlines soar higher than last year

A majority of vacationers plan to take to the air (55% up sharply from 44% who flew in 2002). In terms of airline carriers, a majority of airline travelers (77%) say they find discount airlines, such as JetBlue, Southwest and Song, appealing for a range of reasons including discounted price (63%), flight schedules (36%), for offering "same or better service as larger carriers" (36%), and for the "no frills concept" (25%).

Cars figure into the plans of 57% of vacationers, either their own (50%) or rentals (13%). Slightly fewer than in years past will climb into an RV or van (7%, down from 9%), and take a train (4%, up from 3% in 2002); even fewer will take a bus (2%, down from 3%). However, cruise travel is up to 9% versus 5% in 2002.

Travelers plan online, but continue to book offline

When it comes to travel planning, the Internet continues to beat out other travel resources in popularity (45%, up from 35% in 2002), followed by friends and family (33%, up from 30% in 2002), travel agents (25%, up from 15%), travel magazines (10%, up from 9%), tour operators (6% on par with 2002). One in four (25%) see themselves as "Do-it-Yourselfers" when it comes to planning (down from 39% in 2002).

When it comes time to book, however, non-Internet sources are preferred. Nearly two out of five (37%, up from 33% in 2002) say they will purchase "directly from airlines, hotel, car rentals and/or cruise lines via the telephone," nearly a third would use a travel agent (30%, up from 23%). Online options, including "online travel agencies and travel Websites" (29%, up from 20% in 2002) and "Websites of airlines, hotels, car rentals" (27%, up from 18%) followed closely; fewer said they would book through a tour operator (4% down from 5%).

Asked to rate travel resources on ease-of-use, efficiency and price, travelers gave relatively lukewarm ratings. Direct telephone contact with travel suppliers (i.e. hotel, cruise lines, etc.) received the highest marks for ease of use (56%), efficiency (55%), and price (47%). Travel agents were ranked nearly on par with online travel websites for efficiency (46% vs.47% for travel agents) and ease-of-use (46% vs. 45% for travel agents), and with websites of travel suppliers for efficiency (50%) and ease-of-use (49%).

Credit card use among travelers is on the rise

Among travelers taking long vacations, credit card use is up, while overall use of cash is down. Credit cards remain the most popular form of payment for airfare (60%, up from 54% in 2002), hotels (63%, up from 58%), car rentals (55%, up from 50%), gasoline (44%, up from 31%), and shopping (44% up from 32% in 2002). While showing declines, cash remains the preferred payment method for dining out (47%, down from 63% in 2002), sightseeing (55%, down from 60%), and souvenirs (64%, down from 67%). Decline in the use of cash could be because more travelers say that losing their "wallet and/or valuables" is their "biggest money-related worry" (23%, up from 18%).

The American Express Leisure Travel Index was conducted by telephone between September 23-29, 2003. It surveyed 1,356 adults aged 18 or older. The American Express Leisure Travel Index looked at leisure travel spending budgets, and where and when people vacation. It has a margin error of +/- 4.0%.

American Express Company is a diversified worldwide travel and financial services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, investment products, insurance and international and online banking. For more information on American Express, visit our Web site at www.americanexpress.com

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